Contractors Association of West Virginia
2114 Kanawha Boulevard, East
Charleston, WV 25311
304.342.1166 • fax: 304.342.1074
www.cawv.org
WEST VIRGINIA CONSTRUCTION INDUSTRY
FACTS AND FIGURES
AUGUST 2016

For nearly two years, West Virginia led the nation in the highest percentage of construction
jobs lost in a year’s period. It wasn’t until December 2015 that the rank moved up to 50 out
of 51, a position that has been maintained and reported for May 2016 with a total of -2,700
jobs lost. The state’s loss of construction jobs comes can be attributed to declining revenues
for highway, school, water and sewer, and other public construction projects.

West Virginia, according to the U.S. Environmental Protection Agency, has $1.1 billion in
safe drinking water needs and over $3 billion in wastewater needs. Over $50 million has
been diverted from the West Virginia Infrastructure Fund over the past three years to offset
West Virginia’s general fund budget shortfall.

Today, the School Building Authority of West Virginia only has about $50 million annually to
finance school construction projects, down from about $100 million a few years ago. Over
$12 million has been diverted from the SBA over the past two years to offset West Virginia’s
general fund budget shortfall.

Revenues for the WV Division of Highways continue to decline. In Fiscal Year 2016 that
ended June 30, 2016, WVDOH revenue dropped $51.5 million from FY2015. (FY2016
actual revenue of $691.5 million compared to FY2015 actual revenue of $743 million.)

The state’s wholesale gas continues to drop due to the reduced price of gas. The tax
dropped 1.4 cents per gallon on January 1, 2015 and 1.1 cents per gallon on January 1,
2016. Each penny drop in the wholesale gas tax costs the WVDOH $15 million annually.
The 2015 and 2016 reduction will cost the WVDOH almost $40 million a year. It is projected
to drop another 1 cent per gallon on January 1, 2017.

West Virginia is the only state east of the Mississippi that hasn’t addressed its infrastructure
crisis. Virginia, Maryland, Pennsylvania and Ohio have all passed multimillion dollar highway
funding legislation.

In 2019, the WV Parkways Authority is scheduled to pay off its outstanding bonds and the
88-mile road will be maintained by the WVDOH.

Without tolls, it is estimated the WVDOH will need an additional $59 million a year just to
maintain the Turnpike.

Currently, the WV Turnpike generates $85 million annually, more than 74 percent of which is
paid for by out-of-state drivers. If tolls are eliminated, West Virginians will have to pay 100
percent of the Turnpike’s maintenance costs.

A recommendation of the Governor’s Blue Ribbon Commission (BRC) on Highways is to
expand and increase the authority of the WV Parkways to sell bonds to pay for road projects
statewide backed by future increases in toll revenue.

The BRC recommends that 25 percent of bond proceeds go to the four counties that
encompass the Turnpike and toll rates for West Virginia EZ Pass holders to be frozen for 5
years.

In a survey commissioned in March 2016 by West Virginians for Better Transportation
(WVBT), it was shown that a majority of West Virginians believe that there is an urgent need
to fix state roads and bridges and they support legislation that would increase funding for
transportation.

The results of the poll concluded that 62 percent of those polled said they support the tax
increases proposed in Senate Bill 555, a bill in the 2016 legislative session to increase
funding for roads and bridges by $316 million annually. Despite a 25-9 vote in the Senate,
and the overwhelming support of voters, the bill died in the House of Delegates.

S.B. 555 would have fixed West Virginia’s roads and created thousands of jobs for less than
10 cents a day.

Bad roads are costing state drivers $333 a year – or 90 cents a day – in vehicle
maintenance and repairs.

A study released in March 2015 concludes that West Virginia could realize close to 10,000
new jobs and generate nearly $1 billion in additional economic output with an annual $500
million increase in West Virginia highway and bridge construction and maintenance.

Notably, 47 percent of the 10,000 jobs would be in West Virginia’s economy other than
highway construction, adding about $296 million in wages.

To read the report titled “The Economic Impact of an Annual $500 Million Increase in
Highway and Bridge Construction Investment in West Virginia,” go to
http://www.cawv.org/about-us/survey.html.

To see the executive summary and the full report of the Governor’s Blue Ribbon Commission
on Highways, go to http://www.cawv.org/about-us/survey.html.

To see more on the “Fix Our Roads Now” campaign, go to http://www.cawv.org/aboutus/survey.html.